Involuntary Deductions
Definition
Involuntary Deductions
Involuntary deductions are payroll deductions of certain amounts of pay that are imposed by law.
Withholding Income Tax
All Pay Is Income
All pay is considered income for federal and state income tax purposes, including:
- Basic pay
- Incentive pay
- Special pay
- Lump-sum payment of accrued leave
- Separation pay
Where on the LES
LES Tax Headings
The LES reflects current month and year-to-date income for social security, federal income tax, and state income tax purposes under the headings:
- "FICA TAXES"
- "FED TAXES"
- "STATE TAXES"
…in the middle of the form.
Federal Insurance Contributions Act (FICA) Taxes
FICA Definition
The Federal Insurance Contributions Act (FICA) requires federal agencies to withhold FICA (Social Security and Medicare) taxes from the basic pay of military members covered by the Social Security Act, and to pay matching FICA taxes to the Social Security Administration.
Federal Income Tax Withholding (FITW)
FITW Use
The Federal Income Tax Withholding (FITW) is used to provide for national programs, such as:
- Defense
- Community development
- Law enforcement
Optional Additional
A member may authorize an additional monthly amount of FITW.
FITW Reference
The FITW complies with the Treasury Department Circular E, addressed in military service directives.
State Income Tax Withholding (SITW)
SITW Definition
The State Income Tax Withholding (SITW) refers to state tax laws of the state where the member is a legal resident.
SITW Amount
The amount withheld depends upon the state tax rate.
One-Time Payments
One-time payments may also be subject to state tax.
LES SITW Location
The state for tax purposes is reflected in the first column on the LES under STATE TAXES.
Armed Forces Retirement Home (AFRH)
AFRH Deduction
Monthly Armed Forces Retirement Home (AFRH) deductions from the pay of regular enlisted members, up to a maximum of $1, are set by the Secretary of Defense after consulting with the AFRH board.
What AFRH Funds
Deductions collected help support the U.S. Soldiers', Airmen's, and Naval Homes.